AMD (AMD): “Hardware is the ugly sibling of technology.”

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By Douglas A. McIntyre Published
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Sanford C. Bernstein & Co is saying that as tech spending rises pressure on price for hardware components is actually under more pressure. Hence, the quote above from WSJ.com

AMD’s (AMD) stock started to rally yesterday after results show improving revenue and gross margins over Q1. The stock opened up, at $16.19, a price point it has not seen in several months. But, but the end of the day, it had dropped as low as $15.41.

And, there is reason to believe that the shares will move lower. The evidence in the market is that Intel (INTC) is prepared to keep pressure on prices. Its own gross margins dropped a bit last quarter, so it is keeping pricing at competitive levels.

That is bad news for AMD. The market was beginning to believe that Intel wanted to step away from a bloody battle. But, customers are clearly calling for lower pricing if chip and storage companies want to keep business.

And, that is not good news for AMD.

Douglas A. McIntyre

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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